Taiwan Shares Rebound 1.8 Percent
Friday June 9, 4:48 am ET
Taiwan Shares Rebound 1.8 Percent Despite Political Uncertainties, Outlook for U.S. Economy
TAIPEI, Taiwan (AP) -- Taiwan shares rebounded Friday after they plunged earlier this week on uncertainties about the domestic political situation and the outlook for the U.S. economy.
The Weighted Price Index of the Taiwan Stock Exchange gained 112.82 points, or 1.8 percent, to 6,444.63, but it ended 7.4 percent lower for the week as a whole.
Taiwan's main index plunged 627.83 points, or 9 percent, in the previous four sessions, as markets fell globally on concerns U.S. growth may stall on higher interest rates and lower U.S. demand.
Domestically, an opposition campaign to oust President Chen Shui-bian over insider-trading allegations against relatives aggravated investors' nervousness.
"The market hasn't fallen so much in such a short period before," said Alex Huang, an assistant vice president of Barits International Securities. "Today's rebound was quite natural. It is the first signal the market may have reached a bottom."
Index heavyweight Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker by revenue, gained 4.7 percent at 58.5 New Taiwan dollars, after falling 10.6 percent over the previous four sessions.
TSMC's smaller rival, United Microelectronics Corp., rose 2.1 percent to NT$19.2, after Thursday's fall of 1.2 percent.
Mobile phone maker Compal Communications surged by the 7 percent daily limit to NT$162.
AU Optronics, the world's third-largest liquid-crystal-display panel maker by revenue, rose 6.4 percent to NT$42.55, after a 14.6 percent decline in the previous four sessions.
The technology sector rose 2.4 percent as a whole and the financial sector gained 1.3 percent.
Cathay Financial Holding, Taiwan's largest financial firm by assets, rose 2.3 percent to NT$70.4 after falling 8.5 percent between Monday and Thursday.
Shin Kong Financial Holding rose 2.4 percent to NT$31.75.
There were 567 gainers, 190 decliners, and 86 stocks closed unchanged.
